HURST Corporate Finance advise on MBO of Bay Freight Limited

STALYBRIDGE headquartered Bay Freight Limited, a transport, warehousing and distribution company, has undergone a management buy-out for an undisclosed sum.

Specialist investment vehicle Kinaxia backed the MBO of Bay Freight Limited by Danny Bailey. The family run business was established by Susan and Ernest Bailey in 1960. The deal allows for the retirement of the founders whilst the company continues to operate as Bay Freight under the management team led by their son, Danny Bailey.

Manchester accountancy firm HURST and law firm Gorvins acted for Bay Freight Limited in the deal whilst law firm Gateley acted for Graham Norfolk and Dr Peter Fields of Kinaxia. The deal was part funded by Barclays Corporate in Manchester.

Tim Scott, Corporate Finance Partner at HURST, said:

“It’s fantastic to see transactions like this taking place in the North West. Susan and Ernest have successfully grown the business over a number of years and we worked hard to ensure the right deal was structured for them and all other parties. The MBO will enable the business to achieve its full potential by organic growth and acquisitions.

“Danny and Kinaxia have ambitious plans to take the business forward and we’ll be working with them over the next year looking at a number of acquisition opportunities.”

Robin Richards, Relationship Director at Barclays Corporate in Manchester, added:

“Our specialist knowledge of the industry enabled us provide a bespoke financing package to assist Kinaxia with this deal and provides a clear indication that Barclays is open for business for quality transactions within the sector. We look forward to working closely with Peter and Graham in the future as they successfully build their business.”

Gateley the top 50, national law firm, advised Kinaxia on the deal. Corporate partner, Rebecca Grisewood, led a team at the Manchester office that included banking partner, Susan Molloy, and solicitor, Kate Richards. Grisewood commented:

“We’re delighted to have advised on the MBO, drawing in skills and expertise from across the corporate division.

“The management buy-out demonstrates that if ambitious businesses are willing to show an innovative and skillful approach to brokering deals, while also demonstrating potential return on investment, then deals will continue to be completed in what remains a challenging market.”

Danny Bailey ran his own haulage company before merging it with his parents’ business, Bay Freight Limited. He has more than 40 years’ experience working in the haulage industry and took over the management of Bay Freight in 2000.

HURST has worked with Bay Freight Limited since 2009 and is retained as advisers to the business.

Kinaxia is a recently formed special investment vehicle for the transport and distribution sector run by Dr Peter Fields and Graham Norfolk.